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Executive Summary Virtual Spring Solutions Summit (part 2), Gender Parity Collaborative | 17-18, June 2020 Topic: Tackling the Broken Rung

I. ATTENDANCE Member organizations of the Gender Parity Collaborative met for the Spring Solutions Summit (part 2) on 17-18, June2020. The event was held virtually due to the COVID-19 pandemic:

- Spring Summit – part 1: Engaging Men as Allies (virtual – 7 April) - Spring Summit – part 2: Tackling the Broken Rung (virtual – 17-18 June)

• Kick-off by Laurie Cooke, president and CEO of the Healthcare Businesswomen’s Association (HBA) - review consortium’s mission, discuss current events and read antitrust statement.

• External guest speaker Siri Chilazi, research fellow, Harvard Kennedy School. • 15 member organizations represented including:

o 8 percent President/CEO, 44 percent SVP/VP/Heads, 36 percent Sr. Director/Director and 12 percent Sr. Manager

o 2/3 returning participants; 1/3 new leaders from current Collaborative companies • When Collaborative leaders were asked to described in one word how they felt in regards to the latest events

happening in the U.S. and in the world, here is how they felt (see word cloud below):

II. GENERAL OBSERVATIONS

• Data is an important transformation vehicle for the healthcare industry Data is the vehicle to yield change. Over and over, data opens and/or forces dialogues; data informs, data creates awareness, data confronts and data confirms the need for action.

• Not addressing the Broken Rung has business consequences With increased focus on societal issues and new generations entering the workplace, not addressing the Broken Rung may have a costly price for organizations. Achieving gender parity is more than ever a business imperative.

• The Broken Rung: a managerial issue. The Broken Rung is not a women’s or HR issue; it is a managerial issue. Leaders at all levels in the organizations need to be accountable for their team and team’s team diversity.

• How easy will it be to fix the Broken Rung? 39% of Collaborative member companies believe that fixing the broken rung will be somewhat easy, while only 11% believe it will be very difficult.

Collaborative members fully connected and engaged on virtual platform

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Recommended Action for Member Companies Siri Chilazi, Harvard Research Fellow and gender equality expert, shared actionable systemic solutions during the Summit to help tackle the Broken Rung. “Instead of placing blame on an individual, let’s blame the faceless/nameless system, and make tweaks to that system.” Siri Chilazi. Action item: we’re asking Collaborative companies to reflect on the following action examples discussed during the summit and try to pilot at least one new idea in (part of) your organizations by end of 2020.

1) Use Data and Goals as an Engine for Change: • Work and project assignments: If not being tracked yet, could it be tracked going forward? • Performance evaluation scores and correlation to promotions: Check if one group of people are

consistently receiving better performance scores than others. If they are, this could be an indicator of potential bias built into the performance evaluation process.

• Correlation of performance scores to promotions: past research has shown that on average men get promoted on lower scores than women.

• Gender proportionality: promotions to manager, and selections for high-potential programs, should be proportionate to the available pool; this may help the issue that women are less likely to put themselves forward for opportunities.

• Time to promotion (tenure at time of promotion). • Participation in developmental programs. • Employee survey results. Break down these results by level, and within each level, by gender & race.

Once data is analyzed, goals can be set.

2) Default to Promotion “Opt-Out Model” • After a certain amount of time at the entry-level and with certain performance scores, everyone with

that tenure is - by default - considered for promotion. • If they don’t want to be promoted, or if their manager feels it isn’t appropriate, then the employee

has to make the active choice and action to opt out.

3) Accountability for Managers and Leaders – Additional Actions for Impact • Share promotion track records with managers for them to see their score and their peers’. • Call from the supervisor to review diversity progress and discuss potential issues • Public recognition (e.g. top 10 percent of managers with best track record of nurturing diversity and

getting diverse talent promoted get an award or special recognition). • Call-out bottom 10 percent of managers with worst track record of nurturing/promoting diversity

4) Reduce Bias in Self-Evaluations

• Stop employees from doing self-evaluations or re-design the process so that self-evaluations are not shared with managers before managers make their own evaluations.

5) Joint and Simultaneous Decision-Making • Have/create an external review board and/or remove manager from the hiring decision • Comparing a larger pool of candidates against each other leads to less bias; when looking at a single

person in isolation, their diversity characteristics are prominent.

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Meeting Recap and Information

I. VIRTUAL MEETING ACCOMPLISHMENTS

• McKinsey data revisited and Broken Rung phenomena was defined • Broken rung was confirmed as a business imperative and key enabler to achieving gender parity company-wide

as well an imperative for building a company’s leader pipeline. • The Broken Rung was reframed as a systemic and business issue vs. a women’s issue. • In the simple model presented, Director (L2) and VP (L3) have a key role and should be held accountable for the

teams below them. • HR and talent management processes need to be “neutralized” • Member organizations shared some of their current solutions and actions • Expanded the network of executives actively participating in the Collaborative

Current State of Collaborative Member Companies’ Efforts on Tackling the Broken Rung Pre-work summary - 10 member organizations represented

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II. MEETING GUEST SPEAKER Siri Chilazi, Research Fellow, Harvard Kennedy School

Shared resources during the Summit:

Research on how defaults can increase gender diversity (opt-out vs. the traditional opt-in):

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3022386

Research on how opt-out framing in general closes gender gaps in competition and (self-) promotion: https://www.nber.org/papers/w26484

More general research on the gender gap in self-promotion: https://users-nber-org.ezp-prod1.hul.harvard.edu/~kesslerj/papers/ExleyKessler_SelfPromotion.pdf

III. IMPORTANT UPCOMING COLLABORATIVE DATES

• 29-30 September, 2020 (virtual): Fall Solutions Summit (SVP/VP)

• 2-3 December, 2020 (virtual TBC): Global Council 2020 (C-level/SVP)

IV. REMINDER - 2020 RESULTING PRIORITIES

Resulting top priorities for 2020:

1. Men as allies – continue focus on strategies to build male advocacy as men remain in majority of decision-making positions

2. Address the ‘broken rung’ phenomena: focus on where high volume of advancement decisions are made i.e. lower/mid-level management

• Establish awareness and accountability for gender parity lower down in the organization

• Neutralize/de-bias decision making points in talent management processes

• Adapt/adjust recruiting and hiring processes

3. Revisit requirements for leadership roles and the process(es) in place to support development

4. Put an early light on gender parity in affiliates outside the U.S.: Set expectations for gender parity accountability in all talent review processes

5. Maintain a lens for women of color in all strategies, solutions and action planning

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V. COLLABORATIVE IN THE NEWS

The Collaborative is gaining visibility and was featured in USA Today and in the European Medical Group’s GOLD magazine—a call to action pointed readers to the Gender Parity Collaborative website. The HBA is also leveraging relationships with media partners to garner visibility—a July 1 interview with Pharmaceutical Executive will drop in August. Additionally, the HBA has produced a a “2020 Impact and Insights” report featuring the series of Q and A articles we’ve been publishing since late last year. This report also includes a look at the Collaborative cohort data in the McKinsey Women in the Workplace survey.

About the Gender Parity Collaborative

The Gender Parity Collaborative is a consortium powered by the Healthcare Businesswomen’s Association focused on accelerating gender parity in the healthcare and life-sciences industry. Members to date include: Advanced Clinical, Amgen, Bristol-Myers Squibb, Cardinal Health, GlaxoSmithKline, Johnson & Johnson, Lundbeck, Medidata Solutions, Novartis, Parexel, Pfizer, Quest Diagnostics, Genentech-Roche, Sanofi, Takeda and W2O. More companies will continue to join the consortium, growing its collective influence and impact on the industry. - How the Collaborative creates measurable progress - Each member organization has 2 to 3 committed senior executive champions. The executive champions represent the Global Council, which meet annually to set strategic priorities for the year to come. Members organizations then meet two other times throughout the year to work on and implement prioritized recommendations. Unlike other pledges or movement, the work of the Collaborative demonstrates impact and progress via accountability metrics and data collected annually through a close collaboration with McKinsey & Co/LeanIn.org. and their Women in the Workplace study.